As we can see from the above chart Randgold Resources Limited (GOLD)
this stock jumped dramatically putting on almost twenty dollars recently and is now taking a breather, we need to pay attention and watch closely for a suitable re-entry level.
Randgold is responsive to gold prices and moves quickly either way, this volatility presents us with trading opportunities from time to time. The next opportunity is approaching quickly as Randgold pulls back from a high of $75.00. This pull back should play itself out over the next two weeks when the stock could trade at sub $60.00 which we believe would be a tremendous opportunity to purchase Randgold and also to look at purchasing a few Call options, possibly the December series.
Should gold remain at current levels and continue to consolidate for at least the next few weeks, then the froth on such stocks could well dissipate giving us the opportunity to trade. If gold decides to make a dash for $1033, then it will be a case of hold on to your hats as this stock will move fast.
We hope that this sort of heads up helps you to understand what we are thinking and how we intend to trade the situation once the opportunity has been identified.
We will observe for now and let know when we think the time is ripe to pounce.
Have a good one.
Got a comment – then fire it in.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.
For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.
For those readers who are also interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.